"We have two restaurants and (we're) slated to be a hair salon and (hold retail space)," developer Chris Flaherty said Thursday.

Flaherty has lived in Stockton for two decades. He said downtown Stockton would benefit from an affordable housing project.

"I don't like to call it low-income, because (that) brings a lot of different stereotypes," Flaherty said. "And this is workforce housing, and the people who are qualified to live here are people working around the downtown area."

"Nothing says a city is healthy again like when you start building," Stockton Mayor Anthony Silva said.

The city needs more houses, Silva told KCRA 3.

"Here we are in downtown Stockton, (which) people have sort of left for dead for years," the mayor said. "It’s nice to see revitalization come to fruition. We just had a census come, saying had a few thousand folks move to the city, but (we) haven't built in so long."

Developers said when the project is finished, it's not only going to provide homes for 40 families, but it will give a face-lift to the city of Stockton.

"I've been looking at blight for a while and looking at blocks that need energy and talent, and I'm beside myself," Stockton resident Christian Peterson said.

"Stockton is in a transition and I like where it's heading," said Samuel Jackson, also of Stockton.